This is a record about the past event. While we believe that have notified everyone upfront, there's a small chance that we have missed a few customers while doing so. On Tuesday 11th Jan, around 8pm EST, we have released an update to how the Strategy Tester works with Raindrop and Heikin Ashi chart types. Here's what has changed.
Prior to this change, the Strategy Tester used specific Heikin Ashi and Raindrop data points (like Open/Left etc) for both (a) evaluating your criteria to make trading decisions and (b) deriving theoretical execution prices. However, deriving execution prices from Heikin Ashi or Raindrop charts often results in unrealistic numbers. For example, Open of a Heiken Ashi candle is defined as the midpoint between the previous candle's Open and Close. This is rarely equal to the actual current market price when the corresponding candle has opened.
After this release, strategies based on Raindrop and Heikin Ashi charts keep on making trading decisions basing on the corresponding charts, but they derive execution prices from the underlying raw OHLC data instead. Here's an example of how things will change for a strategy based on Heikin Ashi, with the entry condition like 'enter whenever Close > Open':
Before: Strategy Tester checks the current HA candle, which is HA.Open=228.8, HA.Close=229.6. HA.Close is above HA.Open, so it's time to enter. Entry price would be equal to HA.Open, which is 228.8.
After: Strategy Tester checks the current HA candle, which is HA.Open=228.8, HA.Close=229.6. HA.Close is above HA.Open, so it's time to enter. The underlying Japanese candle for the same time period is Candle.Open=229.9, Candle.Close=229.1. The trade decision remains as HA.Close>HA.Open, but the entry price would be equal to Candle.Open = 229.9, and not HA.Open as before.
This change has changed the results of backtests on Raindrop and Heikin Ashi. If you were running Trading Bots based on these strategies, they were automatically stopped by the system. Please reach out if you have any questions or need further clarification.
Feb 13, 2025 2:10 pm
|